It finally gives the police teeth against the uninsured etc which should give anyone who drives within the law cause to celebrate.
I don't know how much confidence it would give me. I carry my own insurance so I don't care if other motorists have insurance or not: I'm coverd and that's all I care about. In my country/state (USA, New Hampshire) other motorists are not required to have auto insurance (and somehow everyone manages to survive just fine).
I recall reading about this or a similar system: police cameras can track lisence plates all over the country remotely. They can use sophisticated algorithms to search for lawless activity in unique ways: if there's a bank robbery they can search the plates of the getaway car and other cars nearby it in traffic. If the same car pops up in numerous robberies then they can investigate that car as a possible accomplace. I would assume they could also monitor areas known for drug and prostitution transactions, etc.
Essentially they are scrutinizing law abiding citizens for the merest appearance of impropriaty and investigating them. God help you if you are unlucky enough to be near a bank robbery more than once or commute through the bad part of town where they sell drugs. You'll probably end up getting pulled over at some point. And when they find out everything is in order I'm sure they'll find "something" illegal to justify the stop. Like a non-working tail light which just happens to be broken in the shape of a police man's billy club...